EHang announces strategic partnership and investment with Qingdao West Coast New Area

(Photo: EHang)

SoulEHang, an autonomous aircraft (AAV) technology platform company, has announced a strategic partnership with Qingdao West Coast New Area, one of China’s national new areas in Shandong province. The partnership includes his binding $10 million equity investment and the potential for his $10 million additional investment in the future.

Through this strategic partnership, EHang plans to develop the AAV business and urban air mobility (UAM) industry and market in Qingdao, with the goal of making Qingdao a world-class UAM application demonstration area. In addition, EHang will set up a Northeast Asia regional headquarters and a national fire business center in Qingdao West Coast New Area. Qingdao West Coast New Area facilitates the application of all his EHang products by local governments, and provides comprehensive support for our local business operation, sales and service, production and infrastructure construction, among others.

As part of this partnership, the investment arm of Qingdao West Coast New Area will initially invest a total of US$10 million in the company through a private placement of the company’s newly issued Class A common stock. The purchase price for each Class A common stock will be calculated based on the average closing price of the Company’s American Depositary Shares (ADS) over the 30 trading days immediately preceding the execution of the subscription agreement on December 21. Each ADS represents two shares of the Company’s Class A common stock. The company intends to use the proceeds for working capital and general corporate purposes.

The private placement is expected to close in the first quarter of 2023. This is subject to certain investment-related regulatory approvals and clearances in China and other customary closing conditions. Until the closing of the private placement, the investor has provided the company with RMB equivalent to the purchase price without consideration as an intermediate fund, and until the closing, the company may use such funds as working capital and for general corporate purposes. I plan to use it for The issuance of Class A common stock is subject to and made in compliance with Regulation S under the Securities Act of 1933, as amended.

In addition, Qingdao West Coast New Area and/or certain of its affiliates have expressed interest in purchasing additional Class A common shares of the company on such terms for an aggregate aggregate amount of up to US$10 million (offering price including). ) The parties shall discuss and agree further in the future. However, since an expression of interest is not a binding agreement or commitment to purchase, Qingdao West Coast New Area and/or some of its affiliates may purchase fewer securities than express interest in You may decide not to buy at all.

“EHang is a global leader in the eVTOL sector, from hardware to software. The company’s AAV products and fleet operations perfectly match Qingdao’s development requirements for smart, green and highly efficient UAM solutions. We are confident that it will be a “win-win” cooperation with joint efforts to advance Qingdao’s high-end industry and aviation sectors and create a profitable UAM industry ecosystem.

EHang Chief Operating Officer Xin Fang commented: EHang expects to accelerate the development of Qingdao’s AAV industry through new aviation business and low-altitude economy, with funding and strong product demand in the Qingdao local market, which is estimated to reach the level of RMB 100 million in two years. doing. We believe that with our cooperation, Qingdao will become a world-class innovative UAM application demonstration area with his comprehensive AAV industrial chain and commercial activities. ”

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